Minimum Wage Policy : Lessons with a Focus on the ASEAN Region

This report consists of seven chapters and is divided into three parts. Part one focuses on the minimum wage policy, its historical evolution, and the current institutional context across ASEAN countries. Part two delves into the socio?economic imp...

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Main Authors: Del Carpio, Ximena, Pabon, Laura
Format: Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2014
Subjects:
Online Access:http://documents.worldbank.org/curated/en/2014/01/19457058/minimum-wage-policy-lessons-focus-asean-region
http://hdl.handle.net/10986/19027
id okr-10986-19027
recordtype oai_dc
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic ACCOUNTING
AVERAGE WAGE
CLERKS
COLLECTIVE AGREEMENTS
COLLECTIVE DISMISSAL
COMPENSATION
DOMESTIC WORKERS
DOWNWARD WAGE PRESSURES
EARNINGS
ECONOMIC GROWTH
ECONOMIC THEORY
EMPLOYEE
EMPLOYMENT
EMPLOYMENT EFFECTS
EMPLOYMENT GENERATION
EMPLOYMENT LEVEL
EMPLOYMENT OPPORTUNITIES
EMPLOYMENT PROTECTION LEGISLATION
EMPLOYMENT RATE
EMPLOYMENT STATUS
FAIR LABOR STANDARDS
FAMILIES
FAMILY MEMBERS
FEMALE LABOR
FEMALE LABOR FORCE
FIRM PERFORMANCE
FIRM PRODUCTIVITY
HOUSEHOLD INCOME
HUMAN DIGNITY
INFORMAL SECTOR
INTERNATIONAL LABOR ORGANIZATION
INTERNATIONAL MARKETS
JOB CREATION
JOB LOSS
JOBS
LABOR COSTS
LABOR DEMAND
LABOR FORCE PARTICIPATION
LABOR INSPECTORS
LABOR LAW
LABOR MARKET
LABOR MARKET CONDITIONS
LABOR MARKET INSTITUTIONS
LABOR MARKET ISSUES
LABOR MARKET OUTCOMES
LABOR MARKET POLICY
LABOR MARKET REGULATIONS
LABOR MARKET RIGIDITIES
LABOR MARKETS
LABOR ORGANIZATION
LABOR PRODUCTIVITY
LABOR STANDARDS
LABOR TURNOVER
LOW WAGES
MANPOWER
MEDICAL CARE
MIGRANT WORKERS
MINIMUM WAGE
MINIMUM WAGE LAW
MINIMUM WAGE LAWS
MINIMUM WAGES
NOMINAL WAGES
OCCUPATION
OCCUPATIONS
PERMANENT EMPLOYMENT
POLITICAL ECONOMY
PRIMARY OBJECTIVE
PRIVATE SECTOR
PRIVATE SECTOR ACTIVITY
PRODUCTIVITY LEVELS
PROFIT MAXIMIZING
SAFETY
SAFETY NET
SAFETY NETS
SALARIES
SEVERANCE
SEVERANCE PAY
SKILLED LABOR
SOCIAL DEVELOPMENT
SOCIAL PROGRAMS
SWEATSHOPS
TEMPORARY EMPLOYMENT
TRADE UNION REPRESENTATIVES
TRADE UNIONS
UNEMPLOYMENT
UNEMPLOYMENT BENEFITS
UNEMPLOYMENT RATE
UNEMPLOYMENT RATES
UNION REPRESENTATIVES
VULNERABLE WORKERS
WAGE BARGAINING
WAGE DISPERSION
WAGE DISTRIBUTION
WAGE EARNER
WAGE EARNERS
WAGE INCREASE
WAGE INCREASES
WAGE LEVEL
WAGE LEVELS
WAGE POLICIES
WAGE POLICY
WAGE RATE
WAGE RATES
WAGE RIGIDITY
WORK EXPERIENCE
WORKER
WORKERS
WORKING CONDITIONS
WORKING POOR
YOUTH
spellingShingle ACCOUNTING
AVERAGE WAGE
CLERKS
COLLECTIVE AGREEMENTS
COLLECTIVE DISMISSAL
COMPENSATION
DOMESTIC WORKERS
DOWNWARD WAGE PRESSURES
EARNINGS
ECONOMIC GROWTH
ECONOMIC THEORY
EMPLOYEE
EMPLOYMENT
EMPLOYMENT EFFECTS
EMPLOYMENT GENERATION
EMPLOYMENT LEVEL
EMPLOYMENT OPPORTUNITIES
EMPLOYMENT PROTECTION LEGISLATION
EMPLOYMENT RATE
EMPLOYMENT STATUS
FAIR LABOR STANDARDS
FAMILIES
FAMILY MEMBERS
FEMALE LABOR
FEMALE LABOR FORCE
FIRM PERFORMANCE
FIRM PRODUCTIVITY
HOUSEHOLD INCOME
HUMAN DIGNITY
INFORMAL SECTOR
INTERNATIONAL LABOR ORGANIZATION
INTERNATIONAL MARKETS
JOB CREATION
JOB LOSS
JOBS
LABOR COSTS
LABOR DEMAND
LABOR FORCE PARTICIPATION
LABOR INSPECTORS
LABOR LAW
LABOR MARKET
LABOR MARKET CONDITIONS
LABOR MARKET INSTITUTIONS
LABOR MARKET ISSUES
LABOR MARKET OUTCOMES
LABOR MARKET POLICY
LABOR MARKET REGULATIONS
LABOR MARKET RIGIDITIES
LABOR MARKETS
LABOR ORGANIZATION
LABOR PRODUCTIVITY
LABOR STANDARDS
LABOR TURNOVER
LOW WAGES
MANPOWER
MEDICAL CARE
MIGRANT WORKERS
MINIMUM WAGE
MINIMUM WAGE LAW
MINIMUM WAGE LAWS
MINIMUM WAGES
NOMINAL WAGES
OCCUPATION
OCCUPATIONS
PERMANENT EMPLOYMENT
POLITICAL ECONOMY
PRIMARY OBJECTIVE
PRIVATE SECTOR
PRIVATE SECTOR ACTIVITY
PRODUCTIVITY LEVELS
PROFIT MAXIMIZING
SAFETY
SAFETY NET
SAFETY NETS
SALARIES
SEVERANCE
SEVERANCE PAY
SKILLED LABOR
SOCIAL DEVELOPMENT
SOCIAL PROGRAMS
SWEATSHOPS
TEMPORARY EMPLOYMENT
TRADE UNION REPRESENTATIVES
TRADE UNIONS
UNEMPLOYMENT
UNEMPLOYMENT BENEFITS
UNEMPLOYMENT RATE
UNEMPLOYMENT RATES
UNION REPRESENTATIVES
VULNERABLE WORKERS
WAGE BARGAINING
WAGE DISPERSION
WAGE DISTRIBUTION
WAGE EARNER
WAGE EARNERS
WAGE INCREASE
WAGE INCREASES
WAGE LEVEL
WAGE LEVELS
WAGE POLICIES
WAGE POLICY
WAGE RATE
WAGE RATES
WAGE RIGIDITY
WORK EXPERIENCE
WORKER
WORKERS
WORKING CONDITIONS
WORKING POOR
YOUTH
Del Carpio, Ximena
Pabon, Laura
Minimum Wage Policy : Lessons with a Focus on the ASEAN Region
geographic_facet East Asia and Pacific
East Asia
North Africa
South America
description This report consists of seven chapters and is divided into three parts. Part one focuses on the minimum wage policy, its historical evolution, and the current institutional context across ASEAN countries. Part two delves into the socio?economic impacts of the minimum wage policy on workers, households, firms, the economy, and the ASEAN region. Part III links the findings from each country to the ASEAN regional context and brings all the analysis together into a policy and operational discussion. Specifically, part one of the report includes this chapter (chapter one) and chapter two. The rest of chapter one summarizes the findings from all chapters in the report and presents an overview of lessons detailed in the final chapter. To provide some background and context for the remainder of the report, chapter two briefly describes the history of minimum wage policy around the world and the theoretical principles behind wage setting and its effects. Part two consists of four chapters. Chapter three, which describes how the minimum wage policy is structured and managed in each ASEAN country, includes details on the objectives that countries have set out for the policy and how the policy is enforced in each country. Chapter four summarizes results from primary and secondary empirical research on the impacts of minimum wage changes on employment, wages, and informal work in the four focus ASEAN countries. The discussion in this chapter takes into account the existence of complementary worker protection programs in each country. Chapter five discusses empirical results on whether changes in the minimum wage policy affect poverty and inequality. Since each country has distinct poverty programs, the discussion takes into account the presence of various social programs that potentially complement income earned from wage labor. Chapter six focuses on how wage and labor costs affect firms, especially in terms of investment decisions and productivity. Due to the limited availability of evidence on the impact of minimum wages on firm performance and private sector activity in ASEAN countries, a large part of the discussion in this chapter includes evidence from non-ASEAN countries. Lastly, this chapter reviews the status of the main labor market institutions legislated in the region and provides some evidence on how other labor institutions might interact with the minimum wage policy to shape its effect. Part three comprises chapter seven, which reflects on the material presented in previous chapters and provides policy?oriented insights. It discusses the political economy of the minimum wage policy and draws out the implications of having such diverse wage policies and institutional arrangements for wage management in an increasingly interlinked regional bloc such as ASEAN. The chapter also synthesizes the lessons learned throughout the report and frames the main labor policy issues to provide guidance for, and elicit action from, policymakers going forward.
format Publications & Research :: Working Paper
author Del Carpio, Ximena
Pabon, Laura
author_facet Del Carpio, Ximena
Pabon, Laura
author_sort Del Carpio, Ximena
title Minimum Wage Policy : Lessons with a Focus on the ASEAN Region
title_short Minimum Wage Policy : Lessons with a Focus on the ASEAN Region
title_full Minimum Wage Policy : Lessons with a Focus on the ASEAN Region
title_fullStr Minimum Wage Policy : Lessons with a Focus on the ASEAN Region
title_full_unstemmed Minimum Wage Policy : Lessons with a Focus on the ASEAN Region
title_sort minimum wage policy : lessons with a focus on the asean region
publisher World Bank, Washington, DC
publishDate 2014
url http://documents.worldbank.org/curated/en/2014/01/19457058/minimum-wage-policy-lessons-focus-asean-region
http://hdl.handle.net/10986/19027
_version_ 1764443049672310784
spelling okr-10986-190272021-04-23T14:03:50Z Minimum Wage Policy : Lessons with a Focus on the ASEAN Region Del Carpio, Ximena Pabon, Laura ACCOUNTING AVERAGE WAGE CLERKS COLLECTIVE AGREEMENTS COLLECTIVE DISMISSAL COMPENSATION DOMESTIC WORKERS DOWNWARD WAGE PRESSURES EARNINGS ECONOMIC GROWTH ECONOMIC THEORY EMPLOYEE EMPLOYMENT EMPLOYMENT EFFECTS EMPLOYMENT GENERATION EMPLOYMENT LEVEL EMPLOYMENT OPPORTUNITIES EMPLOYMENT PROTECTION LEGISLATION EMPLOYMENT RATE EMPLOYMENT STATUS FAIR LABOR STANDARDS FAMILIES FAMILY MEMBERS FEMALE LABOR FEMALE LABOR FORCE FIRM PERFORMANCE FIRM PRODUCTIVITY HOUSEHOLD INCOME HUMAN DIGNITY INFORMAL SECTOR INTERNATIONAL LABOR ORGANIZATION INTERNATIONAL MARKETS JOB CREATION JOB LOSS JOBS LABOR COSTS LABOR DEMAND LABOR FORCE PARTICIPATION LABOR INSPECTORS LABOR LAW LABOR MARKET LABOR MARKET CONDITIONS LABOR MARKET INSTITUTIONS LABOR MARKET ISSUES LABOR MARKET OUTCOMES LABOR MARKET POLICY LABOR MARKET REGULATIONS LABOR MARKET RIGIDITIES LABOR MARKETS LABOR ORGANIZATION LABOR PRODUCTIVITY LABOR STANDARDS LABOR TURNOVER LOW WAGES MANPOWER MEDICAL CARE MIGRANT WORKERS MINIMUM WAGE MINIMUM WAGE LAW MINIMUM WAGE LAWS MINIMUM WAGES NOMINAL WAGES OCCUPATION OCCUPATIONS PERMANENT EMPLOYMENT POLITICAL ECONOMY PRIMARY OBJECTIVE PRIVATE SECTOR PRIVATE SECTOR ACTIVITY PRODUCTIVITY LEVELS PROFIT MAXIMIZING SAFETY SAFETY NET SAFETY NETS SALARIES SEVERANCE SEVERANCE PAY SKILLED LABOR SOCIAL DEVELOPMENT SOCIAL PROGRAMS SWEATSHOPS TEMPORARY EMPLOYMENT TRADE UNION REPRESENTATIVES TRADE UNIONS UNEMPLOYMENT UNEMPLOYMENT BENEFITS UNEMPLOYMENT RATE UNEMPLOYMENT RATES UNION REPRESENTATIVES VULNERABLE WORKERS WAGE BARGAINING WAGE DISPERSION WAGE DISTRIBUTION WAGE EARNER WAGE EARNERS WAGE INCREASE WAGE INCREASES WAGE LEVEL WAGE LEVELS WAGE POLICIES WAGE POLICY WAGE RATE WAGE RATES WAGE RIGIDITY WORK EXPERIENCE WORKER WORKERS WORKING CONDITIONS WORKING POOR YOUTH This report consists of seven chapters and is divided into three parts. Part one focuses on the minimum wage policy, its historical evolution, and the current institutional context across ASEAN countries. Part two delves into the socio?economic impacts of the minimum wage policy on workers, households, firms, the economy, and the ASEAN region. Part III links the findings from each country to the ASEAN regional context and brings all the analysis together into a policy and operational discussion. Specifically, part one of the report includes this chapter (chapter one) and chapter two. The rest of chapter one summarizes the findings from all chapters in the report and presents an overview of lessons detailed in the final chapter. To provide some background and context for the remainder of the report, chapter two briefly describes the history of minimum wage policy around the world and the theoretical principles behind wage setting and its effects. Part two consists of four chapters. Chapter three, which describes how the minimum wage policy is structured and managed in each ASEAN country, includes details on the objectives that countries have set out for the policy and how the policy is enforced in each country. Chapter four summarizes results from primary and secondary empirical research on the impacts of minimum wage changes on employment, wages, and informal work in the four focus ASEAN countries. The discussion in this chapter takes into account the existence of complementary worker protection programs in each country. Chapter five discusses empirical results on whether changes in the minimum wage policy affect poverty and inequality. Since each country has distinct poverty programs, the discussion takes into account the presence of various social programs that potentially complement income earned from wage labor. Chapter six focuses on how wage and labor costs affect firms, especially in terms of investment decisions and productivity. Due to the limited availability of evidence on the impact of minimum wages on firm performance and private sector activity in ASEAN countries, a large part of the discussion in this chapter includes evidence from non-ASEAN countries. Lastly, this chapter reviews the status of the main labor market institutions legislated in the region and provides some evidence on how other labor institutions might interact with the minimum wage policy to shape its effect. Part three comprises chapter seven, which reflects on the material presented in previous chapters and provides policy?oriented insights. It discusses the political economy of the minimum wage policy and draws out the implications of having such diverse wage policies and institutional arrangements for wage management in an increasingly interlinked regional bloc such as ASEAN. The chapter also synthesizes the lessons learned throughout the report and frames the main labor policy issues to provide guidance for, and elicit action from, policymakers going forward. 2014-07-28T21:40:53Z 2014-07-28T21:40:53Z 2014-01 http://documents.worldbank.org/curated/en/2014/01/19457058/minimum-wage-policy-lessons-focus-asean-region http://hdl.handle.net/10986/19027 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Working Paper Publications & Research East Asia and Pacific East Asia North Africa South America